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Unmasking the Dollar
A Tale of Deception, Debt, and a Collapsing Reserve Currency
Here’s your ‘reserve currency’ thought for the day: Every US dollar is a check written on an account that is overdrawn by 30 trillion dollars.
It’s true. The “full faith and credit” of the US Treasury is largely a myth held together by an institutional framework that rests on a foundation of pure sand. In fact, the USD is not worth the paper it is printed on; it is an IOU flailing in an ocean of red ink.
The sole factor preventing the USD from disappearing is the trust bestowed upon it by gullible individuals who persist in accepting it as a valid form of currency.
However, what motivates people to maintain their faith in the dollar despite being aware of its inherent shortcomings? After all, America's colossal $30 trillion National Debt is far from concealed, and neither is the additional $9 trillion accumulated on the Federal Reserve's balance sheet. This hidden debt, unbeknownst to the American public, casts a shadow of responsibility upon them nonetheless.
To address this inquiry, it is essential to examine the inner workings of the system and how the dollar relies on the numerous institutions established in the aftermath of World War II. These institutions have created an environment that facilitates an audacious and enduring deception—the exchange of valuable manufactured goods, raw materials, and hard labor for mere slips of green paper adorned with the faces of deceased presidents.
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It is truly remarkable to contemplate the ingenuity of the elite individuals who devised this scheme and then imposed it on the masses without encountering significant resistance. Naturally, the system is accompanied by various enforcement mechanisms that swiftly quash any attempts to break free from the dominance of the dollar or, heaven forbid, establish an alternative system altogether. Examples such as Saddam Hussein and Muammar Qaddafi spring to mind as victims of such mechanisms. Nevertheless, when we set aside the institutional framework and the ruthless suppression of those opposing the dollar, there appears to be no valid reason why humanity should remain bound to a currency buried beneath an overwhelming mountain of debt, whose actual value is nearly impossible to ascertain.
Such circumstances were not always the case. There existed a time when the dollar reigned as the mightiest currency globally, rightfully earning its position at the pinnacle. In the aftermath of World War I, the United States held the lion's share of the world's gold reserves, which prompted an international delegation to make a significant decision. They concluded that global currencies would no longer be directly tied to gold but could instead be anchored to the U.S. dollar, given that the greenback itself was still linked to gold. Investopedia provides further insights on this matter in an article:
“The arrangement came to be known as the Bretton Woods Agreement. It established the authority of central banks, which would maintain fixed exchange rates between their currencies and the dollar. In turn, the United States would redeem U.S. dollars for gold on demand….
The U.S. dollar was officially crowned the world’s reserve currency and was backed by the world’s largest gold reserves thanks to the Bretton Woods Agreement. Instead of gold reserves, other countries accumulated reserves of U.S. dollars. Needing a place to store their dollars, countries began buying U.S. Treasury securities, which they considered to be a safe store of money.
The demand for Treasury securities, coupled with the deficit spending needed to finance the Vietnam War and the Great Society domestic programs, caused the United States to flood the market with paper money.
The demand for gold was such that President Richard Nixon was forced to intervene and de-link the dollar from gold, which led to the floating exchange rates that exist today. Although there have been periods of stagflation, which is defined as high inflation and high unemployment, the U.S. dollar has remained the world’s reserve currency.”
However, today, the gold reserves have vanished, leaving behind a colossal burden of debt. The question that arises is how, against all odds, has the dollar maintained its position as the unrivaled global currency?
Advocates of the dollar system may argue that its endurance is attributed to factors such as the sheer size and robustness of the U.S. economy, coupled with the dominance of U.S. financial markets. Yet, such claims can be deemed baseless and unsubstantiated.
In reality, the status of being a reserve currency has no correlation with the supposed “size and strength” of America's post-industrial, service-oriented, bubble-inflated, or economically struggling state. Likewise, it has nothing to do with the purported safety of US Treasuries, which, alongside the dollar, can be seen as one of the most extensive and deceptive financial schemes ever devised.
The true underlying factor behind the continued dominance of the dollar as the world's premier currency is the cartelization of Central Banking.
The Western Central Banks operate as an effective monopoly, orchestrated by a select group of interconnected opportunists who conspire and cooperate in shaping monetary policies to maintain their ironclad control over the financial markets and the global economy. It resembles a monetary mafia, echoing the words of the late George Carlin: ”You and I are not part of it. You and I are not in the big club.” Ultimately, it is the relentless manipulation of interest rates, forward guidance, and the implementation of Quantitative Easing (QE) that have artificially propped up the dollar in its lofty, yet unjustifiable, position.
A paradigm shift looms ahead, primarily driven by the repercussions of Biden's imprudent foreign policy. The consequential impact is compelling key actors in the global economy to establish an alternative system, completely independent of the existing order. This transition marks a significant setback for the West, which has long benefited from uninterrupted wealth extraction from developing nations over the past century. The implications of this shift present a genuine tragedy for Western nations.
As a result of economic sanctions imposed on Russia, a transformative shift is underway, where national currencies are being utilized instead of the dollar in bilateral trade agreements. This transition is facilitated through an independent financial settlement system. Furthermore, in late 2022, Russia introduced a commodities-backed currency through an exchange-traded system, which will be adopted by trading partners in Asia and Africa.
The seizure of Russia's foreign reserves by Washington in April 2022 has significantly accelerated this ongoing process, further amplified by Russia's exclusion from foreign markets. In essence, the expansion of US economic sanctions and boycotts has greatly expanded the non-dollar zone, prompting the emergence of a new monetary order.
For years, the US has masterfully duped the world, trading its flimsy currency for actual valuable assets like oil, goods, and labor. But now, the Biden administration has decided to throw that whole scam out the window and plunge the world into divisive factions.
But why, you may wonder? Oh, to punish Russia, of course! That's the grand plan.
However, hold on a second, shouldn't we first bother to determine whether these sanctions actually achieve their intended goals before carelessly overhauling the entire system?
Regrettably, it seems we're past the point of reconsideration. The conflict against Russia has commenced, and by now we are witnessing the initial outcomes. One glaring example of Biden’s glorious achievements is the “dramatic devaluation” of Russia's currency, the ruble, which is truly astonishing—and simply a lie. Allow me to share some insights from a 2022 CBS article that sheds light on this matter.
“The Russian ruble is the best-performing currency in the world this year.
Two months after the ruble’s value fell to less than a U.S. penny amid the swiftest, toughest economic sanctions in modern history, Russia’s currency has mounted a stunning turnaround. The ruble has jumped 40% against the dollar since January.
Normally, a country facing international sanctions and a major military conflict would see investors fleeing and a steady outflow of capital, causing its currency to drop.
The ruble’s resiliency means that Russia is partly insulated from the punishing economic penalties imposed by Western nations after its invasion of Ukraine.”
Seems that the attack on the ruble did not yield the desired results. Now, how surprising is that? But that doesn’t mean the sanctions are a failure. Oh, no. Just look at the effect they’ve had on Russian commodities. Export receipts are way-down, right? Here’s more from CBS:
“Commodity prices are currently sky-high, and even though there is a drop in the volume of Russian exports due to embargoes and sanctioning, the increase in commodity prices more than compensates for these drops.
Russia is pulling in nearly $20 billion a month from energy exports. Since the end of March, many foreign buyers have complied with a demand to pay for energy in rubles, pushing up the currency’s value.”—Tatiana Orlova, lead emerging markets economist at Oxford Economics.
And that's not all—Russia's trade surplus is following a similar trajectory. Don't just take my word for it, here's an excerpt from an article in The Economist that sheds light on these “surprising” developments:
“Russia’s exports have held up surprisingly well, including those directed to the West. Sanctions permit the sale of oil and gas to most of the world to continue uninterrupted. And a spike in energy prices has boosted revenues further.
As a result, analysts expect Russia’s trade surplus to hit record highs in the coming months. The IIF reckons that in 2022 the current-account surplus, which includes trade and some financial flows, could come in at $250bn (15% of last year’s GDP), more than double the $120bn recorded in 2021. That sanctions have boosted Russia’s trade surplus, and thus helped finance the war, is disappointing, says Mr. Vistesen. Ms Ribakova reckons that the efficacy of financial sanctions may have reached its limits. A decision to tighten trade sanctions must come next.
But such measures could take time to take effect. Even if the EU enacts its proposal to ban Russian oil, the embargo would be phased in so slowly that the bloc’s oil imports from Russia would fall by just 19% this year, says Liam Peach of Capital Economics, a consultancy. The full impact of these sanctions would be felt only at the start of 2023—by which point Mr. Putin will have amassed billions to fund his war.”
Yes, you've got it right. The sanctions are inadvertently causing harm to the US while unintentionally benefiting Russia. And despite this self-inflicted damage, the “experts” seem to believe that imposing additional sanctions is the way to go. It's as if they want to ensure that both feet are thoroughly shot.
One can't help but be astounded by the sheer insanity of such a policy. If you need further evidence of this bewildering approach, here's a snippet from an article at RT that highlights the perplexing nature of the situation:
“Russia could earn a record $100 billion from gas sales to European countries in 2022 due to the sharp rise in energy prices, French newspaper Les Echos reported this week, citing Citibank analysts.
According to the paper, the projected income from gas sales will be almost twice as much as last year. The analysis does not take into account profits from the sale of other Russian commodities, such as oil, coal, and other minerals.
Les Echos reports that, despite sanctions and warnings of a sweeping embargo on Russian energy, the 27 EU countries continue to send roughly $200 million per day to Gazprom.”
It's true, the revenues from gas and oil sales are pouring into Moscow's coffers at an unprecedented rate. Meanwhile, energy prices in both the EU and America have soared to levels not seen in four decades.
One cannot help but recognize the glaring counter-productivity of this policy. The intended goals are being undermined, and the consequences are proving to be detrimental. The evidence is right in front of us, illustrating the flaws and adverse effects of this approach.
It is indeed disheartening that a significant portion of the population may continue to perceive the government's actions as the correct approach, largely due to the conditioning that has led them to believe they simply cannot comprehend the complexities involved. This prevailing sentiment of resignation or detachment from understanding reinforces the status quo and hampers critical analysis and questioning. It is crucial to encourage a more informed and engaged citizenry, empowering individuals to challenge and seek a more profound understanding of the decisions made by their governments.
What if the Ukrainians deploy Biden's new artillery battery (HIMARS) to target cities in Russia? In such a scenario, Putin would respond forcefully by cutting off the supply of hydrocarbons to Europe without delay. This is the likely outcome if Washington persists in escalating the situation. It is almost certain that if Russia's “Special Military Operation” evolves into a full-blown war, Europe will experience a blackout, homes will face freezing temperatures, factories will come to a standstill, and the continent will inevitably plunge into a prolonged and distressing economic depression.
Is there any consideration given in Washington to these potential consequences, or have they become so absorbed in their own media coverage that they have lost touch with the reality of the situation? Indeed, the answer to that question is yes, but it appears that those in Washington are also completely indifferent to the potential consequences. Europe, for the third time in history, is poised to become the theater for an avoidable conflict orchestrated by globalists who seek to solidify their supremacy in the forthcoming long cycle.
Despite the persistent insistence of the Western collective mass media, which seems to defy the evident reality, some major media outlets are growing increasingly apprehensive about the economic repercussions of the conflict in Ukraine. Observers are increasingly acknowledging that the embargoes imposed by the US and its allies were initially meant to cripple the Russian economy, but instead, they are inadvertently causing harm to their own economies.
“Russia is winning the economic war. It is now three months since the west launched its economic war against Russia, and it is not going according to plan. On the contrary, things are going very badly indeed.”—Larry Elliott, Guardian’s economics editor.
Guardian columnist Simon Jenkins highlighted that the imposed embargo has proven to be ineffective. Jenkins pointed out that the sanctions have unintentionally resulted in increased prices for Russian exports like oil and grain, ultimately benefiting Moscow financially. Meanwhile, this situation has left Europeans facing gas shortages and caused food scarcity in African regions.
The notion of “Russia winning the economic war” signifies a stunning reversal of Washington's grand plan to weaken Russia and maintain its global hegemony. Instead, this ill-fated strategy has unleashed a torrent of consequences that threaten to shatter the very foundation of the Transatlantic Alliance and NATO. The strain inflicted upon these longstanding partnerships may catalyze a seismic recalibration of international relations, characterized by a resolute rejection of the prevailing “rules-based system.”
Europe, once a staunch ally of the United States, finds itself at a crossroads. As the economic tide turns in favor of Russia, Europe may seize the opportunity to assert its autonomy and break free from the suffocating grip of American influence. In this climactic scenario, a seismic shift in global power dynamics looms ominously, with Europe and Russia aligning themselves in a formidable alliance, while Washington is left adrift, sinking beneath the treacherous waves of its staggering $30 trillion ocean of red ink.
Those who champion the cause of Washington's proxy war are in severe denial of the devastating impact of their choices, oblivious to the self-inflicted wounds they are inflicting on their homeland. The Ukrainian catastrophe represents the peak of a 30-year saga of devastating interventions, nudging us towards an imminent precipice that threatens a bleak future for our nation. As our economic footprint dwindles, we will face a sharp decline in living standards, an explosive increase in unemployment, and a tragic nosedive of the economy into a spiral of doom.
The capital has grossly miscalculated its susceptibility to a disastrous geopolitical recoil, one that stands poised to usher in a painful and abrupt conclusion to the envisioned New American Century.
A sagacious leader would move mountains to steer us away from this looming disaster. Meanwhile, von der Leyen is troubled by the cultivation of unnecessary fear regarding AIs that are mirroring what we all used to do in our English class essays: repeatedly articulating the same ideas to create the illusion of possessing a wealth of intelligent insights. What a wonderful time to be alive.
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